Oropa raises $1.7m in rights offer for Indonesian gold exploration

South Perth-based gold explorer Oropa Ltd will raise around $1.7 million through a renounceable rights offer to raise funds for further exploration of its Pungkut project in Indonesia.

The company will offer existing shareholders two new shares for every five shares held at a price of four cents each to raise the money, issuing 41.5 million new shares under the deal.

Oropa has also raised $400,000 through the placement of 10 million shares to clients of Patersons Securities Ltd, which will fully underwrite the renounceable rights issue.

Patersons will also act as lead manager to the offer, with Stantons International acting as auditors. The company receives legal advice from Williams & Hughes, while Margaret McGuinn will serve as solicitor to the rights issue offer.

Rights trading began on April 13, with the closing date for receipt of acceptances being May 9.